Who orders this
- Mortgage brokers moving a purchase or switch to approval
- Bank, credit union and monoline underwriters
- Alternative and private lenders, including MICs
- Borrowers asked by their lender to arrange an appraisal
Why lenders ask for a mortgage appraisal
The home is the lender’s security. Before advancing funds, the lender needs an independent opinion that the property is worth enough to support the loan and could be sold if something goes wrong. The appraised value sets the loan-to-value ratio, which can affect your rate, whether mortgage default insurance is required and how much you can borrow.
- Purchase of a resale or new home
- Switching or transferring a mortgage to a new lender
- Refinancing to access equity or consolidate debt
- Adding a second mortgage or home equity line
What makes an appraisal report for mortgage use acceptable
Lenders care about who the report is addressed to, who prepared it and whether it follows their format. Most require the lender to be named as the client or intended user, and many keep approved appraiser lists or require a particular designation. A report ordered for someone else may not be usable, so name the lender and any special instructions when you order. We match the file to an appraiser who fits those requirements.
From order to underwriting
You place the order with the property details, the lender and the borrower’s contact information, and you see the price, tax included, before submitting. The borrower can pay by secure link. A qualified appraiser who covers Toronto contacts the occupant to book the visit, and you get a text and email at each milestone. When the report is complete, it is released online so you can send it to underwriting without delay.
Good to know in Ontario
In Ontario, MPAC assesses property for municipal tax. Its assessed value is not an appraisal, and lenders, courts and the CRA rely on an appraisal of market value on a specific date.
Frequently asked questions
Do I need an appraisal for a mortgage in Toronto?
Often, yes. Lenders usually require one for purchases, refinances and switches, though some insured or low loan-to-value files are approved using an automated valuation. Your broker or lender will confirm. If they ask for a full appraisal, you can order it here with the lender named on the report.
Who orders the bank appraisal for a mortgage?
Traditionally the lender or broker orders it, because the report must be prepared for the lender. Borrowers can start the order on AppraisalDesk too, as long as the correct lender is named. That keeps the report usable for underwriting.
What happens if the appraisal comes in low?
A low value raises the loan-to-value ratio, which can mean a larger down payment, a different product or a revised approval. Talk with your broker about options. If you believe facts such as square footage or features are wrong, ask your lender about a review and supply evidence.
Can I use an appraisal from another lender?
Sometimes, but many lenders will not rely on a report addressed to a different lender. Some accept a transfer letter from the appraiser, others require a new report. Check with the new lender before ordering, and tell us the lender’s name so the report is addressed correctly.
How long does a mortgage appraisal take?
The visit is usually booked within a few days of ordering, depending on access and appraiser availability, and the report commonly follows within a few business days. Real-time updates by text and email help you keep your financing condition date in view.